UAE/TURKISH BUSINESS RELATIONS

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• Turkiye envisages zero bond withholding tax for firms

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  Dr. Nilgün Birgören    Premium Member   Group moderator

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  Turkiye envisages zero bond withholding tax for firms

  Turkiye's Finance Ministry envisages zero withholding tax on Turkish bond transactions for companies including mutual funds, but a 10 per cent tax for individuals under current reform plans.
  
  Its statement came after sources told media foreign investors may face a 10 per cent withholding tax under a draft proposal to be presented to Turkiye's Prime Minister this week.
  
  Turkiye exempted foreign but not local investors from withholding tax in 2006 in order to attract inflows, but the Turkish Constitutional Court ruled last year this breached laws stipulating equal treatment, ordering the government to overhaul the legislation.
  
  "It is envisaged that the withholding tax imposed on companies [including mutual funds] will be zero per cent and on other tax payers [individuals and other bodies] will be 10 per cent," the statement said.
  
  It said the withholding tax on share transactions would remain zero for all investors. Foreigners or non-residents hold around 7.5 per cent of Turkish bonds, according to Treasury data.
  
  • 04 Apr 2010, 10:41 pm
  Dr. Nilgün Birgören wrote: > Turkiye's Finance Ministry envisages zero withholding tax on Turkish > bond transactions for companies including mutual funds, but a 10 per > cent tax for individuals under current reform plans. > > Its statement came after sources told media foreign investors may > face a 10 per cent withholding tax under a draft proposal to be > presented to Turkiye's Prime Minister this week. > > Turkiye exempted foreign but not local investors from withholding tax > in 2006 in order to attract inflows, but the Turkish Constitutional > Court ruled last year this breached laws stipulating equal treatment, > ordering the government to overhaul the legislation. > > "It is envisaged that the withholding tax imposed on companies > [including mutual funds] will be zero per cent and on other tax > payers [individuals and other bodies] will be 10 per cent," the > statement said. > > It said the withholding tax on share transactions would remain zero > for all investors. Foreigners or non-residents hold around 7.5 per > cent of Turkish bonds, according to Treasury data.